Cloud Computing (CC) is one of the fast growing computer network technologies and many companies offer their services through cloud network. Cloud Computing has many properties with respect to the existing traditional service provisions like scalability, availability, fault tolerance, capability and so on which are supported by many IT companies like Google, Amazon, Salesforce.com. These IT companies have more chances to adapt their services into a new environment, known as Cloud computing systems. There are many cloud computing services which are being provided by many IT companies.The purpose of this thesis is to investigate which cloud environment (public, private and hybrid) and services (Infrastructure as a Service, Software as a Service, and Platform as a Service) are suitable for Swedish Armed Forces (SWAF) with respect to performance, security, cost, flexibility and functionality. SWAF is using private (internal) cloud for communications where both sensitive and non-sensitive information are located in the internal cloud. There are problems like maintenance of hardware, cost issues and secure communication while maintaining the private cloud. In order to overcome those problems we have suggested a hybrid and community cloud environment and SaaS, IaaS, PaaS services for SWAF.For suggesting these cloud environments and cloud services we have performed a literature study and two empirical studies (survey and interviews) with different organizations.A new cloud model is designed based on the suggested cloud environment, separate storage spaces for sensitive and non-sensitive information, suitable services and an effective infrastructure for sharing the internal information for SWAF.